Wal-Mart to enter RI

JAKARTA (JP): Another foreign retail business will enter Indonesia through a franchising mechanism.

Wal-Mart Stores Inc. of the United States announced yesterday that it will enter Indonesia early next year following the signing of an agreement between Wal-Mart Stores and the Lippo Group of Indonesia in Bentonville, Arkansas, the United States, last week.

Wal-Mart Stores will provide retail expertise and management services for the operation of Wal-Mart Supercenter at Lippo Karawaci in Tangerang, west of here. The ownership will be held by the Lippo Group as the retail industry remains closed to foreign investors.

Wal-Mart Supercenter, which will occupy an area of 180,000 square feet at Lippo Karawaci, will offer various kinds of merchandise.

In addition to Wal-Mart, a number of foreign retailers, like Sogo and the defunct Yaohan, entered Indonesia through franchising arrangements with local firms. (rid)